Laws: Cases and Codes : U.S. Code : Title 20 : Section 1412


   
U.S. Code as of: 01/19/04
Section 1412. State eligibility

    (a) In general
      A State is eligible for assistance under this subchapter for a
    fiscal year if the State demonstrates to the satisfaction of the
    Secretary that the State has in effect policies and procedures to
    ensure that it meets each of the following conditions:
      (1) Free appropriate public education
        (A) In general
          A free appropriate public education is available to all
        children with disabilities residing in the State between the
        ages of 3 and 21, inclusive, including children with
        disabilities who have been suspended or expelled from school.
        (B) Limitation
          The obligation to make a free appropriate public education
        available to all children with disabilities does not apply with
        respect to children:
            (i) aged 3 through 5 and 18 through 21 in a State to the
          extent that its application to those children would be
          inconsistent with State law or practice, or the order of any
          court, respecting the provision of public education to
          children in those age ranges; and
            (ii) aged 18 through 21 to the extent that State law does
          not require that special education and related services under
          this subchapter be provided to children with disabilities
          who, in the educational placement prior to their
          incarceration in an adult correctional facility:
              (I) were not actually identified as being a child with a
            disability under section 1401(3) of this title; or
              (II) did not have an individualized education program
            under this subchapter.
      (2) Full educational opportunity goal
        The State has established a goal of providing full educational
      opportunity to all children with disabilities and a detailed
      timetable for accomplishing that goal.
      (3) Child find
        (A) In general
          All children with disabilities residing in the State,
        including children with disabilities attending private schools,
        regardless of the severity of their disabilities, and who are
        in need of special education and related services, are
        identified, located, and evaluated and a practical method is
        developed and implemented to determine which children with
        disabilities are currently receiving needed special education
        and related services.
        (B) Construction
          Nothing in this chapter requires that children be classified
        by their disability so long as each child who has a disability
        listed in section 1401 of this title and who, by reason of that
        disability, needs special education and related services is
        regarded as a child with a disability under this subchapter.
      (4) Individualized education program
        An individualized education program, or an individualized
      family service plan that meets the requirements of section
      1436(d) of this title, is developed, reviewed, and revised for
      each child with a disability in accordance with section 1414(d)
      of this title.
      (5) Least restrictive environment
        (A) In general
          To the maximum extent appropriate, children with
        disabilities, including children in public or private
        institutions or other care facilities, are educated with
        children who are not disabled, and special classes, separate
        schooling, or other removal of children with disabilities from
        the regular educational environment occurs only when the nature
        or severity of the disability of a child is such that education
        in regular classes with the use of supplementary aids and
        services cannot be achieved satisfactorily.
        (B) Additional requirement
          (i) In general
            If the State uses a funding mechanism by which the State
          distributes State funds on the basis of the type of setting
          in which a child is served, the funding mechanism does not
          result in placements that violate the requirements of
          subparagraph (A).
          (ii) Assurance
            If the State does not have policies and procedures to
          ensure compliance with clause (i), the State shall provide
          the Secretary an assurance that it will revise the funding
          mechanism as soon as feasible to ensure that such mechanism
          does not result in such placements.
      (6) Procedural safeguards
        (A) In general
          Children with disabilities and their parents are afforded the
        procedural safeguards required by section 1415 of this title.
        (B) Additional procedural safeguards
          Procedures to ensure that testing and evaluation materials
        and procedures utilized for the purposes of evaluation and
        placement of children with disabilities will be selected and
        administered so as not to be racially or culturally
        discriminatory. Such materials or procedures shall be provided
        and administered in the child's native language or mode of
        communication, unless it clearly is not feasible to do so, and
        no single procedure shall be the sole criterion for determining
        an appropriate educational program for a child.
      (7) Evaluation
        Children with disabilities are evaluated in accordance with
      subsections (a) through (c) of section 1414 of this title.
      (8) Confidentiality
        Agencies in the State comply with section 1417(c) of this title
      (relating to the confidentiality of records and information).
      (9) Transition from subchapter III to preschool programs
        Children participating in early-intervention programs assisted
      under subchapter III of this chapter, and who will participate in
      preschool programs assisted under this subchapter, experience a
      smooth and effective transition to those preschool programs in a
      manner consistent with section 1437(a)(8) of this title. By the
      third birthday of such a child, an individualized education
      program or, if consistent with sections 1414(d)(2)(B) and 1436(d)
      of this title, an individualized family service plan, has been
      developed and is being implemented for the child. The local
      educational agency will participate in transition planning
      conferences arranged by the designated lead agency under section
      1437(a)(8) of this title.
      (10) Children in private schools
        (A) Children enrolled in private schools by their parents
          (i) In general
            To the extent consistent with the number and location of
          children with disabilities in the State who are enrolled by
          their parents in private elementary and secondary schools,
          provision is made for the participation of those children in
          the program assisted or carried out under this subchapter by
          providing for such children special education and related
          services in accordance with the following requirements,
          unless the Secretary has arranged for services to those
          children under subsection (f) of this section:
              (I) Amounts expended for the provision of those services
            by a local educational agency shall be equal to a
            proportionate amount of Federal funds made available under
            this subchapter.
              (II) Such services may be provided to children with
            disabilities on the premises of private, including
            parochial, schools, to the extent consistent with law.
          (ii) Child-find requirement
            The requirements of paragraph (3) of this subsection
          (relating to child find) shall apply with respect to children
          with disabilities in the State who are enrolled in private,
          including parochial, elementary and secondary schools.
        (B) Children placed in, or referred to, private schools by
          public agencies
          (i) In general
            Children with disabilities in private schools and
          facilities are provided special education and related
          services, in accordance with an individualized education
          program, at no cost to their parents, if such children are
          placed in, or referred to, such schools or facilities by the
          State or appropriate local educational agency as the means of
          carrying out the requirements of this subchapter or any other
          applicable law requiring the provision of special education
          and related services to all children with disabilities within
          such State.
          (ii) Standards
            In all cases described in clause (i), the State educational
          agency shall determine whether such schools and facilities
          meet standards that apply to State and local educational
          agencies and that children so served have all the rights they
          would have if served by such agencies.
        (C) Payment for education of children enrolled in private
          schools without consent of or referral by the public agency
          (i) In general
            Subject to subparagraph (A), this subchapter does not
          require a local educational agency to pay for the cost of
          education, including special education and related services,
          of a child with a disability at a private school or facility
          if that agency made a free appropriate public education
          available to the child and the parents elected to place the
          child in such private school or facility.
          (ii) Reimbursement for private school placement
            If the parents of a child with a disability, who previously
          received special education and related services under the
          authority of a public agency, enroll the child in a private
          elementary or secondary school without the consent of or
          referral by the public agency, a court or a hearing officer
          may require the agency to reimburse the parents for the cost
          of that enrollment if the court or hearing officer finds that
          the agency had not made a free appropriate public education
          available to the child in a timely manner prior to that
          enrollment.
          (iii) Limitation on reimbursement
            The cost of reimbursement described in clause (ii) may be
          reduced or denied - 
              (I) if - 
                (aa) at the most recent IEP meeting that the parents
              attended prior to removal of the child from the public
              school, the parents did not inform the IEP Team that they
              were rejecting the placement proposed by the public
              agency to provide a free appropriate public education to
              their child, including stating their concerns and their
              intent to enroll their child in a private school at
              public expense; or
                (bb) 10 business days (including any holidays that
              occur on a business day) prior to the removal of the
              child from the public school, the parents did not give
              written notice to the public agency of the information
              described in division (aa);

              (II) if, prior to the parents' removal of the child from
            the public school, the public agency informed the parents,
            through the notice requirements described in section
            1415(b)(7) of this title, of its intent to evaluate the
            child (including a statement of the purpose of the
            evaluation that was appropriate and reasonable), but the
            parents did not make the child available for such
            evaluation; or
              (III) upon a judicial finding of unreasonableness with
            respect to actions taken by the parents.
          (iv) Exception
            Notwithstanding the notice requirement in clause (iii)(I),
          the cost of reimbursement may not be reduced or denied for
          failure to provide such notice if - 
              (I) the parent is illiterate and cannot write in English;
              (II) compliance with clause (iii)(I) would likely result
            in physical or serious emotional harm to the child;
              (III) the school prevented the parent from providing such
            notice; or
              (IV) the parents had not received notice, pursuant to
            section 1415 of this title, of the notice requirement in
            clause (iii)(I).
      (11) State educational agency responsible for general supervision
        (A) In general
          The State educational agency is responsible for ensuring that
        - 
            (i) the requirements of this subchapter are met; and
            (ii) all educational programs for children with
          disabilities in the State, including all such programs
          administered by any other State or local agency - 
              (I) are under the general supervision of individuals in
            the State who are responsible for educational programs for
            children with disabilities; and
              (II) meet the educational standards of the State
            educational agency.
        (B) Limitation
          Subparagraph (A) shall not limit the responsibility of
        agencies in the State other than the State educational agency
        to provide, or pay for some or all of the costs of, a free
        appropriate public education for any child with a disability in
        the State.
        (C) Exception
          Notwithstanding subparagraphs (A) and (B), the Governor (or
        another individual pursuant to State law), consistent with
        State law, may assign to any public agency in the State the
        responsibility of ensuring that the requirements of this
        subchapter are met with respect to children with disabilities
        who are convicted as adults under State law and incarcerated in
        adult prisons.
      (12) Obligations related to and methods of ensuring services
        (A) Establishing responsibility for services
          The Chief Executive Officer or designee of the officer shall
        ensure that an interagency agreement or other mechanism for
        interagency coordination is in effect between each public
        agency described in subparagraph (B) and the State educational
        agency, in order to ensure that all services described in
        subparagraph (B)(i) that are needed to ensure a free
        appropriate public education are provided, including the
        provision of such services during the pendency of any dispute
        under clause (iii). Such agreement or mechanism shall include
        the following:
          (i) Agency financial responsibility
            An identification of, or a method for defining, the
          financial responsibility of each agency for providing
          services described in subparagraph (B)(i) to ensure a free
          appropriate public education to children with disabilities,
          provided that the financial responsibility of each public
          agency described in subparagraph (B), including the State
          Medicaid agency and other public insurers of children with
          disabilities, shall precede the financial responsibility of
          the local educational agency (or the State agency responsible
          for developing the child's IEP).
          (ii) Conditions and terms of reimbursement
            The conditions, terms, and procedures under which a local
          educational agency shall be reimbursed by other agencies.
          (iii) Interagency disputes
            Procedures for resolving interagency disputes (including
          procedures under which local educational agencies may
          initiate proceedings) under the agreement or other mechanism
          to secure reimbursement from other agencies or otherwise
          implement the provisions of the agreement or mechanism.
          (iv) Coordination of services procedures
            Policies and procedures for agencies to determine and
          identify the interagency coordination responsibilities of
          each agency to promote the coordination and timely and
          appropriate delivery of services described in subparagraph
          (B)(i).
        (B) Obligation of public agency
          (i) In general
            If any public agency other than an educational agency is
          otherwise obligated under Federal or State law, or assigned
          responsibility under State policy or pursuant to subparagraph
          (A), to provide or pay for any services that are also
          considered special education or related services (such as,
          but not limited to, services described in sections 1401(1)
          relating to assistive technology devices, 1401(2) relating to
          assistive technology services, 1401(22) relating to related
          services, 1401(29) relating to supplementary aids and
          services, and 1401(30) of this title relating to transition
          services) that are necessary for ensuring a free appropriate
          public education to children with disabilities within the
          State, such public agency shall fulfill that obligation or
          responsibility, either directly or through contract or other
          arrangement.
          (ii) Reimbursement for services by public agency
            If a public agency other than an educational agency fails
          to provide or pay for the special education and related
          services described in clause (i), the local educational
          agency (or State agency responsible for developing the
          child's IEP) shall provide or pay for such services to the
          child. Such local educational agency or State agency may then
          claim reimbursement for the services from the public agency
          that failed to provide or pay for such services and such
          public agency shall reimburse the local educational agency or
          State agency pursuant to the terms of the interagency
          agreement or other mechanism described in subparagraph (A)(i)
          according to the procedures established in such agreement
          pursuant to subparagraph (A)(ii).
        (C) Special rule
          The requirements of subparagraph (A) may be met through - 
            (i) state (!1) statute or regulation;

            (ii) signed agreements between respective agency officials
          that clearly identify the responsibilities of each agency
          relating to the provision of services; or
            (iii) other appropriate written methods as determined by
          the Chief Executive Officer of the State or designee of the
          officer.
      (13) Procedural requirements relating to local educational agency
        eligibility
        The State educational agency will not make a final
      determination that a local educational agency is not eligible for
      assistance under this subchapter without first affording that
      agency reasonable notice and an opportunity for a hearing.
      (14) Comprehensive system of personnel development
        The State has in effect, consistent with the purposes of this
      chapter and with section 1435(a)(8) of this title, a
      comprehensive system of personnel development that is designed to
      ensure an adequate supply of qualified special education, regular
      education, and related services personnel that meets the
      requirements for a State improvement plan relating to personnel
      development in subsections (b)(2)(B) and (c)(3)(D) of section
      1453 of this title.
      (15) Personnel standards
        (A) In general
          The State educational agency has established and maintains
        standards to ensure that personnel necessary to carry out this
        subchapter are appropriately and adequately prepared and
        trained.
        (B) Standards described
          Such standards shall - 
            (i) be consistent with any State-approved or
          State-recognized certification, licensing, registration, or
          other comparable requirements that apply to the professional
          discipline in which those personnel are providing special
          education or related services;
            (ii) to the extent the standards described in subparagraph
          (A) are not based on the highest requirements in the State
          applicable to a specific profession or discipline, the State
          is taking steps to require retraining or hiring of personnel
          that meet appropriate professional requirements in the State;
          and
            (iii) allow paraprofessionals and assistants who are
          appropriately trained and supervised, in accordance with
          State law, regulations, or written policy, in meeting the
          requirements of this subchapter to be used to assist in the
          provision of special education and related services to
          children with disabilities under this subchapter.
        (C) Policy
          In implementing this paragraph, a State may adopt a policy
        that includes a requirement that local educational agencies in
        the State make an ongoing good-faith effort to recruit and hire
        appropriately and adequately trained personnel to provide
        special education and related services to children with
        disabilities, including, in a geographic area of the State
        where there is a shortage of such personnel, the most qualified
        individuals available who are making satisfactory progress
        toward completing applicable course work necessary to meet the
        standards described in subparagraph (B)(i), consistent with
        State law, and the steps described in subparagraph (B)(ii)
        within three years.
      (16) Performance goals and indicators
        The State - 
          (A) has established goals for the performance of children
        with disabilities in the State that - 
            (i) will promote the purposes of this chapter, as stated in
          section 1400(d) of this title; and
            (ii) are consistent, to the maximum extent appropriate,
          with other goals and standards for children established by
          the State;

          (B) has established performance indicators the State will use
        to assess progress toward achieving those goals that, at a
        minimum, address the performance of children with disabilities
        on assessments, drop-out rates, and graduation rates;
          (C) will, every two years, report to the Secretary and the
        public on the progress of the State, and of children with
        disabilities in the State, toward meeting the goals established
        under subparagraph (A); and
          (D) based on its assessment of that progress, will revise its
        State improvement plan under part A of subchapter IV of this
        chapter as may be needed to improve its performance, if the
        State receives assistance under that part.
      (17) Participation in assessments
        (A) In general
          Children with disabilities are included in general State and
        district-wide assessment programs, with appropriate
        accommodations, where necessary. As appropriate, the State or
        local educational agency - 
            (i) develops guidelines for the participation of children
          with disabilities in alternate assessments for those children
          who cannot participate in State and district-wide assessment
          programs; and
            (ii) develops and, beginning not later than July 1, 2000,
          conducts those alternate assessments.
        (B) Reports
          The State educational agency makes available to the public,
        and reports to the public with the same frequency and in the
        same detail as it reports on the assessment of nondisabled
        children, the following:
            (i) The number of children with disabilities participating
          in regular assessments.
            (ii) The number of those children participating in
          alternate assessments.
            (iii)(I) The performance of those children on regular
          assessments (beginning not later than July 1, 1998) and on
          alternate assessments (not later than July 1, 2000), if doing
          so would be statistically sound and would not result in the
          disclosure of performance results identifiable to individual
          children.
            (II) Data relating to the performance of children described
          under subclause (I) shall be disaggregated - 
              (aa) for assessments conducted after July 1, 1998; and
              (bb) for assessments conducted before July 1, 1998, if
            the State is required to disaggregate such data prior to
            July 1, 1998.
      (18) Supplementation of State, local, and other Federal funds
        (A) Expenditures
          Funds paid to a State under this subchapter will be expended
        in accordance with all the provisions of this subchapter.
        (B) Prohibition against commingling
          Funds paid to a State under this subchapter will not be
        commingled with State funds.
        (C) Prohibition against supplantation and conditions for waiver
          by Secretary
          Except as provided in section 1413 of this title, funds paid
        to a State under this subchapter will be used to supplement the
        level of Federal, State, and local funds (including funds that
        are not under the direct control of State or local educational
        agencies) expended for special education and related services
        provided to children with disabilities under this subchapter
        and in no case to supplant such Federal, State, and local
        funds, except that, where the State provides clear and
        convincing evidence that all children with disabilities have
        available to them a free appropriate public education, the
        Secretary may waive, in whole or in part, the requirements of
        this subparagraph if the Secretary concurs with the evidence
        provided by the State.
      (19) Maintenance of State financial support
        (A) In general
          The State does not reduce the amount of State financial
        support for special education and related services for children
        with disabilities, or otherwise made available because of the
        excess costs of educating those children, below the amount of
        that support for the preceding fiscal year.
        (B) Reduction of funds for failure to maintain support
          The Secretary shall reduce the allocation of funds under
        section 1411 of this title for any fiscal year following the
        fiscal year in which the State fails to comply with the
        requirement of subparagraph (A) by the same amount by which the
        State fails to meet the requirement.
        (C) Waivers for exceptional or uncontrollable circumstances
          The Secretary may waive the requirement of subparagraph (A)
        for a State, for one fiscal year at a time, if the Secretary
        determines that - 
            (i) granting a waiver would be equitable due to exceptional
          or uncontrollable circumstances such as a natural disaster or
          a precipitous and unforeseen decline in the financial
          resources of the State; or
            (ii) the State meets the standard in paragraph (18)(C) of
          this section for a waiver of the requirement to supplement,
          and not to supplant, funds received under this subchapter.
        (D) Subsequent years
          If, for any year, a State fails to meet the requirement of
        subparagraph (A), including any year for which the State is
        granted a waiver under subparagraph (C), the financial support
        required of the State in future years under subparagraph (A)
        shall be the amount that would have been required in the
        absence of that failure and not the reduced level of the
        State's support.
        (E) Regulations
          (i) The Secretary shall, by regulation, establish procedures
        (including objective criteria and consideration of the results
        of compliance reviews of the State conducted by the Secretary)
        for determining whether to grant a waiver under subparagraph
        (C)(ii).
          (ii) The Secretary shall publish proposed regulations under
        clause (i) not later than 6 months after June 4, 1997, and
        shall issue final regulations under clause (i) not later than 1
        year after June 4, 1997.
      (20) Public participation
        Prior to the adoption of any policies and procedures needed to
      comply with this section (including any amendments to such
      policies and procedures), the State ensures that there are public
      hearings, adequate notice of the hearings, and an opportunity for
      comment available to the general public, including individuals
      with disabilities and parents of children with disabilities.
      (21) State advisory panel
        (A) In general
          The State has established and maintains an advisory panel for
        the purpose of providing policy guidance with respect to
        special education and related services for children with
        disabilities in the State.
        (B) Membership
          Such advisory panel shall consist of members appointed by the
        Governor, or any other official authorized under State law to
        make such appointments, that is representative of the State
        population and that is composed of individuals involved in, or
        concerned with, the education of children with disabilities,
        including - 
            (i) parents of children with disabilities;
            (ii) individuals with disabilities;
            (iii) teachers;
            (iv) representatives of institutions of higher education
          that prepare special education and related services
          personnel;
            (v) State and local education officials;
            (vi) administrators of programs for children with
          disabilities;
            (vii) representatives of other State agencies involved in
          the financing or delivery of related services to children
          with disabilities;
            (viii) representatives of private schools and public
          charter schools;
            (ix) at least one representative of a vocational,
          community, or business organization concerned with the
          provision of transition services to children with
          disabilities; and
            (x) representatives from the State juvenile and adult
          corrections agencies.
        (C) Special rule
          A majority of the members of the panel shall be individuals
        with disabilities or parents of children with disabilities.
        (D) Duties
          The advisory panel shall - 
            (i) advise the State educational agency of unmet needs
          within the State in the education of children with
          disabilities;
            (ii) comment publicly on any rules or regulations proposed
          by the State regarding the education of children with
          disabilities;
            (iii) advise the State educational agency in developing
          evaluations and reporting on data to the Secretary under
          section 1418 of this title;
            (iv) advise the State educational agency in developing
          corrective action plans to address findings identified in
          Federal monitoring reports under this subchapter; and
            (v) advise the State educational agency in developing and
          implementing policies relating to the coordination of
          services for children with disabilities.
      (22) Suspension and expulsion rates
        (A) In general
          The State educational agency examines data to determine if
        significant discrepancies are occurring in the rate of
        long-term suspensions and expulsions of children with
        disabilities - 
            (i) among local educational agencies in the State; or
            (ii) compared to such rates for nondisabled children within
          such agencies.
        (B) Review and revision of policies
          If such discrepancies are occurring, the State educational
        agency reviews and, if appropriate, revises (or requires the
        affected State or local educational agency to revise) its
        policies, procedures, and practices relating to the development
        and implementation of IEPs, the use of behavioral
        interventions, and procedural safeguards, to ensure that such
        policies, procedures, and practices comply with this chapter.
    (b) State educational agency as provider of free appropriate public
      education or direct services
      If the State educational agency provides free appropriate public
    education to children with disabilities, or provides direct
    services to such children, such agency - 
        (1) shall comply with any additional requirements of section
      1413(a) of this title, as if such agency were a local educational
      agency; and
        (2) may use amounts that are otherwise available to such agency
      under this subchapter to serve those children without regard to
      section 1413(a)(2)(A)(i) of this title (relating to excess
      costs).
    (c) Exception for prior State plans
      (1) In general
        If a State has on file with the Secretary policies and
      procedures that demonstrate that such State meets any requirement
      of subsection (a) of this section, including any policies and
      procedures filed under this subchapter as in effect before the
      effective date of the Individuals with Disabilities Education Act
      Amendments of 1997, the Secretary shall consider such State to
      have met such requirement for purposes of receiving a grant under
      this subchapter.
      (2) Modifications made by State
        Subject to paragraph (3), an application submitted by a State
      in accordance with this section shall remain in effect until the
      State submits to the Secretary such modifications as the State
      deems necessary. This section shall apply to a modification to an
      application to the same extent and in the same manner as this
      section applies to the original plan.
      (3) Modifications required by Secretary
        If, after the effective date of the Individuals with
      Disabilities Education Act Amendments of 1997, the provisions of
      this chapter are amended (or the regulations developed to carry
      out this chapter are amended), or there is a new interpretation
      of this chapter by a Federal court or a State's highest court, or
      there is an official finding of noncompliance with Federal law or
      regulations, the Secretary may require a State to modify its
      application only to the extent necessary to ensure the State's
      compliance with this subchapter.
    (d) Approval by Secretary
      (1) In general
        If the Secretary determines that a State is eligible to receive
      a grant under this subchapter, the Secretary shall notify the
      State of that determination.
      (2) Notice and hearing
        The Secretary shall not make a final determination that a State
      is not eligible to receive a grant under this subchapter until
      after providing the State - 
          (A) with reasonable notice; and
          (B) with an opportunity for a hearing.
    (e) Assistance under other Federal programs
      Nothing in this chapter permits a State to reduce medical and
    other assistance available, or to alter eligibility, under titles V
    and XIX of the Social Security Act [42 U.S.C. 701 et seq., 1396 et
    seq.] with respect to the provision of a free appropriate public
    education for children with disabilities in the State.
    (f) By-pass for children in private schools
      (1) In general
        If, on December 2, 1983, a State educational agency is
      prohibited by law from providing for the participation in special
      programs of children with disabilities enrolled in private
      elementary and secondary schools as required by subsection
      (a)(10)(A) of this section, the Secretary shall, notwithstanding
      such provision of law, arrange for the provision of services to
      such children through arrangements which shall be subject to the
      requirements of such subsection.
      (2) Payments
        (A) Determination of amounts
          If the Secretary arranges for services pursuant to this
        subsection, the Secretary, after consultation with the
        appropriate public and private school officials, shall pay to
        the provider of such services for a fiscal year an amount per
        child that does not exceed the amount determined by dividing - 
            (i) the total amount received by the State under this
          subchapter for such fiscal year; by
            (ii) the number of children with disabilities served in the
          prior year, as reported to the Secretary by the State under
          section 1418 of this title.
        (B) Withholding of certain amounts
          Pending final resolution of any investigation or complaint
        that could result in a determination under this subsection, the
        Secretary may withhold from the allocation of the affected
        State educational agency the amount the Secretary estimates
        would be necessary to pay the cost of services described in
        subparagraph (A).
        (C) Period of payments
          The period under which payments are made under subparagraph
        (A) shall continue until the Secretary determines that there
        will no longer be any failure or inability on the part of the
        State educational agency to meet the requirements of subsection
        (a)(10)(A) of this section.
      (3) Notice and hearing
        (A) In general
          The Secretary shall not take any final action under this
        subsection until the State educational agency affected by such
        action has had an opportunity, for at least 45 days after
        receiving written notice thereof, to submit written objections
        and to appear before the Secretary or the Secretary's designee
        to show cause why such action should not be taken.
        (B) Review of action
          If a State educational agency is dissatisfied with the
        Secretary's final action after a proceeding under subparagraph
        (A), such agency may, not later than 60 days after notice of
        such action, file with the United States court of appeals for
        the circuit in which such State is located a petition for
        review of that action. A copy of the petition shall be
        forthwith transmitted by the clerk of the court to the
        Secretary. The Secretary thereupon shall file in the court the
        record of the proceedings on which the Secretary based the
        Secretary's action, as provided in section 2112 of title 28.
        (C) Review of findings of fact
          The findings of fact by the Secretary, if supported by
        substantial evidence, shall be conclusive, but the court, for
        good cause shown, may remand the case to the Secretary to take
        further evidence, and the Secretary may thereupon make new or
        modified findings of fact and may modify the Secretary's
        previous action, and shall file in the court the record of the
        further proceedings. Such new or modified findings of fact
        shall likewise be conclusive if supported by substantial
        evidence.
        (D) Jurisdiction of court of appeals; review by United States
          Supreme Court
          Upon the filing of a petition under subparagraph (B), the
        United States court of appeals shall have jurisdiction to
        affirm the action of the Secretary or to set it aside, in whole
        or in part. The judgment of the court shall be subject to
        review by the Supreme Court of the United States upon
        certiorari or certification as provided in section 1254 of
        title 28.



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